The landscape for 401(k) plan sponsors has become increasingly challenging. With over 200 ERISA class-action lawsuits filed since 2020, fiduciary litigation targeting 401(k) plans is surging, creating unprecedented legal exposure. High-profile cases, even against well-respected entities like NYU and Fidelity, highlight a stark reality: even the most well-intentioned fiduciaries can face devastating personal liability for participant losses.
But here’s the good news: you’re not powerless. By implementing these five evidence-backed strategies, you can significantly shield your plan from costly litigation while simultaneously strengthening outcomes for your participants.
Navigating today’s complex financial landscape in Arizona can feel overwhelming for many—whether you’re an entrepreneur, executive, professional, retiree, or simply someone focused on building and protecting your family’s financial future. For professionals in the Phoenix area working at leading companies like Axon Enterprise, Avnet, Freeport McMoRan, Insight Enterprises, Microchip Technology, and Onsemi, this can be especially true when navigating employee stock options and purchase plans (ESPPs). Regardless of your background or stage in life, having a personal financial strategy or wealth management plan that reflects your unique situation and goals is essential to enhancing, protecting, and perhaps even eventually passing on your wealth to children, grandchildren, or philanthropic priorities with confidence.
The potential value that managed account providers bring—including personalized guidance, holistic planning, dynamic rebalancing, and tax-aware portfolio management—has rarely been in question. The primary critique has always been about their added expenses relative to target-date funds, which have offered a reasonable, if highly imperfect, solution at a much lower cost.
However, a combination of intense competition, technological advancements that improve the efficiency of delivery, and other market factors has driven these expenses down meaningfully over time, particularly for the very large plans. As the cost difference between managed accounts and target-date funds has become much more negligible, especially for mega plans, the value proposition for managed accounts has grown meaningfully.
This shift allows mega defined contribution plan sponsors with substantial assets to deliver institutional-quality investment management and financial advice to participants at significantly reduced costs. These large-scale plans—spanning 401(k), 403(b), and 457 platforms—leverage their substantial bargaining power to negotiate managed account fees that reframe the traditional cost-benefit equation for their participants.
For ultra-high-net-worth families, your private wealth management firm—the family office—is at the heart of your financial strategy. As direct investing and complex portfolio oversight become the norm, the demand for top-tier investment talent has never been greater. Yet, many family offices are finding that the hunt for a world-class, in-house investment analyst is a struggle.
It’s not just about competing with Wall Street salaries. The challenges are often structural, cultural, and economic. But what if the solution isn’t to compete for talent you can’t get, but to hire the experts you need?
For many successful executives, entrepreneurs, and long-term investors, a concentrated stock position is a testament to their hard work and success. It’s also a paradox: a source of tremendous wealth that can feel impossible to diversify without facing a devastating tax bill.
If you’ve built substantial equity through stock options, inherited a large position, or simply held a winning investment for years, the question remains: How do you break free and reduce your risk without triggering massive tax consequences?
Traditional tax-loss harvesting often falls short when dealing with positions that have substantial embedded gains. When your cost basis is near zero and your wealth is tied up in a single stock, the conventional wisdom of “just sell and diversify” is financially devastating.
As a 401(k) investment committee member, you hold a position of profound trust and critical responsibility. This isn’t merely an oversight role; you are a plan fiduciary, legally and ethically bound to act exclusively in the best interests of your plan participants and their beneficiaries. This article serves as a direct guide for every committee member to effectively fulfill these vital duties and navigate the complexities of plan governance.
For ultra-high-net-worth (UHNW) investors and family offices, the mandate extends beyond mere capital growth; it encompasses the sophisticated preservation and intergenerational amplification of dynastic wealth. In an investment landscape characterized by unprecedented market dynamics, persistent inflationary pressures, and a demand for superior, uncorrelated returns, the strategic allocation of capital today will define legacies for decades to come. Increasingly, private equity (PE) has transitioned from an alternative allocation to an indispensable core strategy for discerning investors seeking to navigate these complexities and secure their financial future. Here’s why private equity warrants a preeminent position within your diversified portfolio.
Let’s talk about your money—your savings, your retirement goals, your children’s education. All of it depends on the financial choices you make. And when it comes to advice on those choices, the real question is: who do you trust?
This isn’t just a small detail. It’s the difference between guidance that’s tailored to you and recommendations that may serve someone else’s interests. At the heart of it all is one essential question: Is your advisor a fiduciary?
If you’re not sure what that means—or why it matters—it’s time to find out. Because knowing the answer could be the most important step you take toward protecting your financial future.
Divorce is a seismic event, but for high-net-worth individuals, it’s not just an emotional upheaval—it’s a complete financial re-architecture. If you’ve recently navigated the complexities of asset division, you know the initial settlement is just the beginning. The post-divorce landscape, especially in states with equitable distribution laws like Illinois, presents both formidable challenges and powerful opportunities for wealthy spouses.
Whether you’ve always managed your finances or relied on your partner’s expertise, this new chapter demands immediate, strategic action. Protecting your newly independent financial position, understanding state-specific tax implications, and mastering legal requirements are paramount.
Let’s break down the essential steps to secure and grow your wealth as you embrace your new financial independence.
Selling your business is a monumental achievement, marking the culmination of years of hard work and dedication. But as one chapter closes, another exciting, albeit complex, one begins: transitioning from the steady income of an active business to living off the total return of an investment portfolio. This shift blends excitement, uncertainty, and a new set of financial considerations.
Here’s what every entrepreneur should consider to ensure a smooth and successful journey from business owner to thriving investor.
